Does AI make your vision statement more important than a purpose statement?

Around 15 years ago, the concept of leading with purpose gained traction, reshaping how organisations articulate their core motivations. Today, a clear purpose statement has become an expected part of a company’s profile, implemented through its brand, corporate governance and cultural alignment. It satisfies consumers, employees and investors, meets disclosure requirements under the UK Corporate Governance Code and guides directors when clarifying why the organisation exists beyond the pursuit of profit. 

However, at a time when artificial intelligence (AI) increasingly touches every aspect of a company’s operations, is purpose enough?

This piece explores whether a check is needed to protect a company against the growing influence of AI on the actions it takes to achieve its purpose. The possibility of unintended consequences from the uncontrolled application of AI is very real.

As long as businesses were managed wholly by humans, there was always someone in the chain of delivery to provide balance and a common-sense check. An employee or director could recognise that a course of action, while strictly aligned to purpose, might produce an unintended or unacceptable consequence.

Now, with the rapid deployment of AI, that protection might not be there. What can be done to safeguard stakeholders in such circumstances?

The answer may lie with the company’s vision. If sincerely considered and carefully articulated, it can provide an essential safety net, and the human touch needed to ensure good long-term decisions for the benefit of all and provide a much-needed protection against the dangers of the blind pursuit of purpose.

Purpose: grounds an organisation in its reason for existing, offering immediate direction and meaning beyond profit. 

• Purpose frameworks help integrate ethical behaviour, cultural alignment and stakeholder engagement – particularly relevant in meeting governance obligations like Section 172 reporting.

Vision: looks beyond current realities, guiding an organisation toward an idealised future that does not yet exist. It inspires by creating a sense of collective ambition, uniting people across generations.

In practice, purpose is a tangible, measurable part of a company’s make-up, linked to the past but often tied to the present. Vision, on the other hand, pushes an organisation beyond today’s concerns, weaving in human-centric ideals that transcend shareholder returns and immediate goals.

Ultimately, purpose and vision are not opposites. Instead, a robust purpose can serve as the ethical bedrock on which a transformative vision is built – ensuring that long−term ambitions remain grounded in core organisational values. Vision pilots a company beyond where purpose can take it.

AI promises to automate processes, amplify capabilities and shape networks. Yet, without a moral compass, it relentlessly pursues the goals it’s been set – sometimes with unintended consequences. Here, the human element of leadership and governance becomes paramount.

Key concern: AI may optimise for speed or efficiency but overlook broader societal or ethical implications.

Consider a hypothetical case where an AI−driven logistics system maximises delivery routes for fuel savings, inadvertently increasing noise pollution in residential areas. A purely profit−focused algorithm might view that as success, whereas a vision anchored in community wellbeing would prompt a recalibration of priorities.

A robust vision can guide both human decision makers and AI systems by:

• Setting ethical guardrails: if an algorithm pushes for cost savings at the expense of safety, a vision grounded in societal wellbeing prompts recalibration.

• Allowing interpretative flexibility: since vision statements are aspirational, they can adapt to changing circumstances without sacrificing their core essence.

By designing a vision with ethical foundations, organisations create a framework where humans remain free to question outcomes. This ensures that technology aligns with wider organisational values rather than undermining them.

There are some issues to consider when designing a vision:

1. Timeless relevance

• What: Align the vision with universal human values that outlast market cycles and technological trends.

• Why it matters: AI and market forces change quickly; a vision that remains meaningful ensures continuity in mission and identity.

2. Cultural resonance

• What: Reflect current social and cultural zeitgeists.

• Why it matters: Engaged employees and stakeholders are more likely to champion a vision that resonates with societal expectations.

3. Passing on the baton

• What: Make your vision a guiding principle for acquisitions, succession planning and hiring.

• Why it matters: A well-articulated vision endures leadership changes and unites diverse teams across generations.

4. Ethical foundations

• What: Infuse the statement with clear ethical parameters so that AI-driven decisions aren’t purely utilitarian.

• Why it matters: Technology evolves rapidly; clear ethical anchors ensure new tools like AI serve people rather than control them.

5. Explanations for alignment

• What: Offer supportive narratives and clarifications, so stakeholders understand the vision’s intent.

• Why it matters: As regulations like GDPR require transparency in AI-driven decisions, a well-explained vision similarly gives employees and partners clarity on the ‘why’ behind changes.

Under the UK Corporate Governance Code, most businesses now present a purpose framework in their annual reports. This framework addresses:

• Why the organisation exists (beyond profit)

• Core values and cultural drivers

• Strategy aligned with purpose

• Stakeholder engagement approaches (including Section 172 considerations)

• Risk management and internal controls

• Board leadership and effectiveness

• Governance priorities and ethical expectations

These elements ensure the board demonstrates accountability for how the business impacts its employees, community, supply chain and the environment. However, while the purpose framework clarifies the ‘why’, it may not fully address the long-term ‘where we want to be’.

At the heart of the FRC’s Corporate Governance Code is the idea that organisations shouldn’t only articulate a compelling purpose but also ensure that both the board and executive teams actively steward it. Vision fits into this narrative by serving as the infinite, ever-evolving future state that an organisation aspires to – one that extends beyond ‘why’ the company exists (its purpose) to focus on ‘where’ it wants to go in the long term, driven by a just cause. In this model, the organisation acts as a contributor rather than the sole beneficiary, inviting everyone who believes in the cause to shape its future.

• Proactive approach: Organisations that embody a strong, just-cause vision link this future state directly to both financial and non-financial goals, such as environmental commitments, community impact or innovation breakthroughs.

• Compliance-focused approach: Some organisations stop after declaring a broad-brush vision without providing real actions or milestones. This can erode stakeholder trust if there is little evidence of how the vision influences day-to-day decisions.

Integrating vision into strategy

One of the greatest challenges in annual reports is moving from lofty statements to tangible strategies. Under the Code, boards must demonstrate how strategy aligns with the stated purpose. A well-crafted, infinite vision provides an excellent bridge between the two:

• Clarity of direction: The vision helps board members and management teams to prioritise resources, shape new market offerings and guide investment choices.

• Tangible milestones: By defining specific targets that reflect the vision – whether related to revenue growth, market expansion or sustainability achievements – companies can demonstrate accountability and measure progress over time.

• Proactive approach: In their strategic report, organisations outline how vision-related objectives inform key decisions, such as which projects to initiate or how to structure performance incentives.

• Compliance-focused approach: Some merely state the organisation’s vision in general terms, without linking it to quantifiable objectives – missing the chance to show how the vision truly drives corporate strategy.

Embedding vision in corporate culture

Alongside purpose, the FRC Code emphasises the importance of culture. If the purpose is the ‘why’, culture and values describe the ‘how’ of organisational behaviour – while vision serves as the unifying, long-term cause that everyone strives towards.

• Proactive approach: Evidence of a vision-driven culture might include leadership development programmes, recognition schemes tied to vision-aligned behaviours or staff surveys linking employee sentiment to future strategic aims.

• Compliance-focused approach: Some organisations keep the vision siloed at leadership level, rather than weaving it into wider cultural initiatives. This disconnection can undermine credibility if daily operations fail to reflect the stated vision.

Board leadership and vision oversight

The Code holds boards accountable for guiding and monitoring progress towards organisational objectives. A critical aspect of the annual report is illustrating how the board evaluates progress on the vision and adapts to changing circumstances.

• Proactive approach: Boards regularly review whether the vision remains relevant in light of market shifts, stakeholder feedback and emerging risks. They document how vision-centric discussions influence governance, risk management and overall strategic direction.

• Compliance-focused approach: Directors may simply reference the vision without detailing how it’s assessed or updated, raising doubts about whether the organisation truly invests in its just cause.

Linking vision to stakeholder engagement

Stakeholders increasingly expect organisations to adopt a future-oriented perspective that incorporates social and environmental responsibilities. The annual report’s S172 Statement – where directors explain how they consider stakeholder interests – can demonstrate how the vision addresses these expectations.

• Proactive approach: By incorporating stakeholder perspectives, organisations show how feedback from employees, communities and society continually shapes and reinforces the just-cause vision, underpinning inclusivity and trust.

• Compliance-focused approach: Vision statements remain static or vague, offering few examples of how stakeholder insights guide leadership – suggesting that the vision may be more of a slogan than a genuine guiding force.

Connecting vision to remuneration

A further key requirement under the FRC Code is aligning executive pay with long-term goals. A well-integrated, infinite vision ensures that remuneration structures reward leaders for progressing towards the organisation’s just cause.

• Proactive approach: Organisations incorporate non-financial metrics – such as sustainability targets, innovation milestones or workforce engagement – into incentive programmes, demonstrating how the vision is actively realised.

• Compliance-focused approach: Short-term financial outcomes dominate reward structures, with limited consideration of how these incentives align with the company’s broader, long-term aspirations.

By coupling purpose (the reason you exist) with a just-cause vision (the timeless aspiration you pursue), annual reports can present a coherent narrative of both day-to-day operations and far-reaching impact. This enhanced purpose framework not only guides performance metrics but also informs the ethical and moral direction of the business, inviting all stakeholders – internal and external – to partake in an ongoing journey towards an ever-evolving cause.

• Purpose: Offers immediate clarity on why the organisation serves others.

• Vision: Instils a timeless ambition that transcends near-term objectives.

In my own work consulting on reputation and investor engagement initiatives, I’ve noticed that organisations often crystallise their purpose to please immediate stakeholders – yet the true magic happens when they articulate a vision that inspires employees and society alike. It’s that extra spark that turns a plan today into a legacy.

With AI increasingly shaping decisions and processes, businesses stand at a crossroads: continue relying predominantly on purpose, or embrace a more expansive vision that can adapt and self-correct in the face of unforeseen challenges.

Critics’ view: Some argue that focusing on ‘grand visions’ might lead to idealism over practicality. They caution that, if not grounded in robust governance, visionary statements can become empty slogans.

Proponents’ view: Others see visionary frameworks as essential for long-term sustainability, especially when powerful algorithms execute tasks that once relied on human discretion and empathy.